A majority of parents prioritise a larger inheritance for their children over an enjoyable retirement, a new study suggests.
In a survey of 2,048 British adults conducted by polling organisation Populous, many parents said they actually planned to cut down on spending in their retirement. The reason given was to maximise their children’s potential inheritance.
The study found that the issue of inheritance was important to parents, as 81 per cent said they hoped to leave something to their children. Only a quarter of those surveyed said they were not concerned about it.
By contrast, three quarters of respondents younger than 50 said they would rather their parents enjoy retirement than leave them any money.
As people got older, the importance they placed on leaving an inheritance began to weaken, the survey found. Researchers posited that this could be a response to the reality of their own financial situations or the realisation that their children are not financially dependent on them.
The research was carried out on behalf of insurance company Saga Personal Finance. Alex Edmans, the firm’s head of retirement, said that parents “should not feel obliged to leave an inheritance” to their children.
Those who do want to leave something should first “make sure they have enough to fulfil their retirement goals and have something left for later life care”, he added.
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